Recently Elected to Serve on Your HOA Board of Directors? Here’s What You Need to Know!

If you’ve been elected to serve on your homeowners’ association (HOA) board, you’re no doubt excited about making a wonderful contribution to your neighborhood and its residents. This type of volunteer service will most likely feel completely new and different from any other you’ve had before now, even if you’ve previously served on other committees or non-profit boards. It’s an exciting opportunity, and we at Tru-Star Management Solutions, LLC understand firsthand the joy that helping in this capacity can bring!

Setting Yourself Up for Success

Just like any other job, it’s going to take some time to learn the rules and procedures involved with being on the HOA board, and that’s okay! Remember to relax and enjoy the process of becoming more involved and remain open to learnings lots of new and exciting things.

Speaking of learning, make sure you give yourself regular opportunities to really study up on key laws, issues, and other HOA-specific topics. This world can seem a bit overwhelming—luckily, Tru-Star Management Solutions, LLC is an experienced HOA management company in Chandler, AZ, so we can give you some tips. Here are four key areas where you should focus your education:

Community Governing Documents: Every community has its own set of unique governing documents. The governing documents, including the Covenants, Conditions and Restrictions (CC&Rs) are in place to help residents know what’s expected of them, and what they can expect from being a member in their specific community association. The governing documents for your neighborhood include a wide variety of topics and cover everything from maintenance responsibilities, use restrictions, parking rules, etc. As a board member, you are now considered one of the experts, so you should get to know your governing documents thoroughly, so you can be prepared to answer questions from residents about the rules.

State Laws: In addition to your community’s governing documents, you should also be very familiar with your state’s statutes that govern planned communities and/or condominium associations. Each state has its own laws, so it’s imperative that you familiarize yourself with them.

Financial status: One of the most important functions of the HOA is financial oversight. As a board member, it is your job to help further the interests of the association and community, and make sure funds are properly collected, distributed, and utilized for the betterment of the community. A healthy budget makes for a happy neighborhood, so make sure you take the time to review the past and current budgets for your community, as well as any reserve studies.

Insurance: Unfortunately, no community is so great that it can’t face the threat of a lawsuit at some point. Insurance is key here, and it should be noted that Directors and Officers liability insurance is different from HOA General Liability insurance—though both are very important. To start, look at the section of your CC&Rs pertaining to insurance and make sure your policies and coverage are in line with the requirements of your governing documents. Work with a reputable insurance agent, who specializes in community associations to ensure you have sufficient coverage and policies in place.

Hiring an experienced HOA management company in Chandler, AZ can make the job of a newly elected board member so much easier, by providing them with the necessary tools and training for success. Contact Tru-Star Management Solutions, LLC today to find out what we can do for you!